[quote name='SadExchange']Alright, I just hooked it up to the internet, and it said it needed an update, so I went through and did that. Does that include all the game updates, system updates, and everything else?[/QUOTE]
If you are playing a regular 360 game and you attempt to go online over live to play multiplayer if an update is required you will need to install the update or you will not be able to play multiplayer over live. Updates to the game itself can be delivered this way, and you won't get them if you don't have a connection active over live.